the OTC .today

Monday, January 30, 2012
Today's PUMPs & dumpS

The Medisafe Con Job
Wear A GLHV If You Give This Stock Any Love

Seriously, if you are going to fall for one of the oldest cons in the book, and that is the stock repurchase program announced by Medisafe 1Technologies (MFTH), then just take your money and give it to a charity.  We don't remember the last time a stock repurchase program on a Pump & Dump scheme was ever completed.  We remember one "upto" $2 million program which actually bought back $1,100 worth of stock.  You see all of these BS stock repurchase programs come with a bunch of caveats and clever mind games that make you think they mean more than they do.  If you still haven't read our article, It's A Pump & Dump, which talks about stock repurchase schemes, then smack yourself across the back of your head and go read it.

In the case of the MFTH pretend repurchase program, the press release, which is written to sound like the company is willing to buy back 10 million shares of stock at a dime, actually flaunts the fact that the insiders are counting on the gullibility of the public.  The coinciding $200K promotional campaign only reinforces the true intent of the bogus announcement.  Let's look at the veiled caveats which we've highlighted in bold print.
"Under the program, Medisafe 1 Technologies is authorized to repurchase up to 10 million of its outstanding shares of common stock during the next 12 months at a price up to $0.10 per share on the open market or by conducting privately negotiated transactions depending on current market conditions and other factors.

The repurchase program would cost up to $1,000,000 and is subject to obtaining third party financing for the program whereby Medisafe is currently in talks with several financial intuitions to provide funding for the Repurchase Program. The Program may be suspended or discontinued at any time"
Ok, so exactly how many suckers out there are actually going to fall for this load of crap?  There is no hope that this repurchase program will ever see the light of day.

This is MFTH's fourth PnD campaign since May of last year and while each of the previous campaigns created very short term spikes in the share price, those who bought into those spikes have all lost 90% of their money.  Each previous campaign was brought to a screeching halt by rampant insider bid whacking, predicated by the now 300% dilution of shares endured by the bag holders.  In all that time, the company has yet to earn its first dollar in revenues and, in fact, doesn't even act like it's in business, as it reports spending very little money.

We'll bet, it is no coincidence that this new PnD campaign comes on the heels of an SEC filing which announced the award of 100,000,000 new shares to MFTH President, Jacob Elhadad and CFO Yisrael Gottlieb.  This new stock looks like it may be a replacement for the stock these gentlemen plan on dumping on to the street, courtesy of this new campaign.  It happens to be just enough new stock to ensure that they maintain control of the company after they dump the rest of their old shares.  Even if the proposed 10 million of the 50 million shares these gentlemen will have unloaded at the end of the day, were to be repurchased, rest assured it would be at a fraction of the price that they will receive for the stock they dumped. 

MFTH claims to own a patented technology intended to ensure the safety of drug administration through a hypodermic needle and yet lists no asset value within its financials for that patent.  We think that the company is actually in the business of sticking it to the public.

Speaking of absolute garbage, let's take another look at Global Health Voyageur (GLHV) which is now underway with its first Pump & Dump campaign since last September's fiasco, which created an astounding number of insta-losers.  That two week campaign saw a 20 minute spike in share prices on day one to 42 cents on heavy volume.  The rest of the campaign was spent using "urgent alerts" to try and lure bag holders into a plan to average down their already tremendous losses.  Instead, we saw one of the fastest 92% declines, down to 3 cents, ever.  Unbelievably, insiders are not concerned with the lack of credibility the touts, who were charged with the pimping duties, created for themselves with respect to this stock and they have been reemployed to try and prostitute some more of this garbage on you.

We don't believe that we've ever received more emails of gratitude then we have for the alert we issued on GLHV as the first PnD got underway.  Subscribers credited us with saving them from financial disaster and we believe that the principles of that alert, which can be accessed by clicking here, still apply.  We'll draw your attention to a prediction that we made in that alert that we called dead on.
"In fact, we're so sure that this business is doomed to fail its shareholders, that we will take the unprecedented step of guaranteeing that share prices will return to the levels they were at a mere two months ago."
Updating the current situation at GLHV, nothing seems to have changed, at least not for the good.  This travel agency, which is all GLHV is, even though it seeks to specialize in travel arrangements for medical patients, has still yet to earn its first dollar in revenues, in spite of several announcements claiming new acquisitions and contracts. The $5 million in debt is still there, like we told you it would be back in September.  What has increased since the last reported quarter, is the number of shares issued and outstanding, which have been diluted by 15%.  That is a whole lot.  Another increase can be found in the net loss for the quarter which grew by an astounding 500% over the previous quarter.  Once again, as we surmised in our last alert, we think that this PnD campaign is timed ahead of the release of the next financials, due imminently, which will give you even less reason to be interested in this scheme.  Kind of gives you a warm fuzzy feeling, doesn't it?

The Frogads (FROG) Pump & Dump continues as more and more pimps are brought on board and the share price goes lower and lower.  Without even a nod to the suckers who bought in at much higher prices, there is continued touting, if not begging, to try and get you to take more of the 90 million shares that President Julian Spitari started with.  We've been over the ridiculousness of the claims that this obvious scam has been made on a couple of occasions, so we'll just refer you back to our previous alert on the subject, which you can retrieve by clicking here.

We haven't addressed the North Spring Resources (NSRS) matter for a while, so we'll give a nod to the nanny booers who like to throw the stock's current share price of 70 cents in our face.  First of all, we have never said that Pump & Dump subjects cannot see an increase in share price.  Many do.  What we do say is that 10s or even 100s of millions of dollars in losses will be realized by a collective many, as they line the pockets of so few.  Just ask the bag holders of other issues unscrupulously promoted by, like AMWI, LEXG, and POTG, how they feel right now.  Or perhaps those that bought NSRS stock in the .90s, a level which we doubt this stock will ever see again. We would never doubt this pimp's ability to screw over a gullible public, but we will say a few things with certainty:  at the end of the day, there will be many more losers than winners; NSRS is an absolute scam; and, its share price will eventually and avoidably go to zero (or close to it).

Ufood Restaurant Group (UFFC) is also stepping up their current PnD campaign with the addition of new touts into the fracas.  It's a good thing too, because there is an awful lot of new insider stock to dump onto the street. So far, the campaign, which started last Tuesday, has generated 35% losses for some.  Thanks to us, there's not a lot of interest in this one as we pointed out the holes in the scheme with an alert back in November and another one last week. Friends don't let friends buy bad stocks.

Av Works Aviation Corp (SPLI) is another one who tries to rev up its PnD with the retaining of another tout for pimping duties.  This campaign, which started last Monday, has bag holders already enjoying 50% losses for putting their faith in such an obvious scheme.  That's what they get for not reading our alert on the matter, which you can access by clicking here.

Back to main page